Making decisions at a decentralized level could undermine economies of scale and decrease business efficiency.
- Making decisions at a decentralized level could undermine economies of scale and decrease business efficiency.
- Organizations that succeed integrate constant horizontal communication and issue resolution into their organizational culture. With centralization, an organization, or at least its top levels, can regulate the actions of lower-level workers to ensure that they are in line with its objectives.
- Top managers can establish a comprehensive perspective of operations and implement strict financial controls thanks to centralization.
- In a highly decentralized company, decision-making power is delegated to lower-level employees, who thus have more responsibility and authority to make and carry out choices.
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